For the Quarter Ending March 2022
In the first quarter of 2022, the Polylactic Acid market remained firm with a slight increment of 1% when compared with Q4 of 2021 in the North American region. The demand outlook from end use sectors such as food services and others remained favourable which led to its substantial offtakes. Being biodegradable, its demand in medical services have compelled manufacturers to increase the production rate. Feedstock shortage hindered the production of Polylactic Acid by several exporters from the Asia-Pacific countries after the conflict between Russia and Ukraine. Polylactic Acid price quotations were observed at USD 2660/MT, FOB USGC, USA in the month of January and USD 2630/MT, FOB USGC, USA towards the quarter end.
In the first quarter of 2022, Polylactic Acid market in the Asia Pacific region remained stagnant throughout the quarter despite the hike in the feedstock, corn, and sugarcane prices. The market sentiments in Q1 were governed by the ample availability of feedstock along with the high plant operating rates in order to cater the demand in the domestic market. The resurgence of Covid virus in China surged the demand of Polylactic Acid in medical devices. The prices of Polylactic Acid were quoted at USD 2790/MT, CFR Qingdao, China in the beginning of quarter and USD 2810/MT, Qingdao, China towards the quarter end.
During the first quarter of 2022, the European Polylactic Acid market witnessed stable prices which turned firm by the quarter end. On the other and, in Q1 of 2022, the prices have shown a decline of approximately 7% in comparison to Q4 of 2021. The prices in the month of January were observed at USD 2908/MT, CFR Hamburg and USD 3090/MT, towards the quarter end. The growth observed during the quarter was due to the firm demand from downstream sectors. Manufacturers reported sufficient availability of feed to fulfil the domestic demand in the European region.
Quarter Ending December 2021
The Polylactic Acid market in the North American region remained firm during the last quarter of 2021, although the supply outlook improved compared to the third quarter. After the hurricane season, the operational rates at the production facilities were restored and the prices eased gradually in the US domestic market. Although the cost support from the raw material remained persistent against the robust demand and the imports were restricted from the Asia Pacific region due to the limited availability of freight vessels. As a ripple effect, the prices for Polylactic Acid in the US domestic market remained staggering upwards during the fourth quarter of 2021.
In the fourth quarter of 2021, the Polylactic Acid market sentiments in the Asia Pacific region observed mixed sentiments throughout the quarter, whereas the prices were remained buoyed in the Southeast Asian region. In Southeast Asia, this market movement is attributed to an unprecedented increase in energy, wages, and international freight costs. In the Northeast Asian region, the supply concerns due to the subdued production rates in the Chinese facilities amidst the power rationing, although the operational rates were improved in the second half of the quarter. As a ripple effect, the FOB Shanghai discussion for Polylactic Acid was settled at USD 3115 per tonne, during the quarter ending in December.
During the fourth quarter of 2021, the European Polylactic Acid market sentiments remained buoyed throughout the quarter. This development is attributed to the ongoing electricity crisis which forced producers to reduce the operational rates at the manufacturing sites. In addition, the raw material prices soared drastically coupled with the high charges of freight vessels. The imported volumes were delayed amidst the congestion and limited availability of freight vessels in the Asia Pacific region. As a ripple effect, the Polylactic Acid offers eased in the European domestic market.